Fuel prices: A sign of an economic recovery?
Posted By RichC on March 11, 2010
One of the noticeable economic signs for average Americans that our economy might be in recovery is the rise of fuel prices. An article in this mornings Wall Street Journal stated that “Gasoline prices are throttling toward $3 a gallon” and that “gasoline futures have rallied 21% since hitting a low in February to close Wednesday at $2.2851 a gallon on the New York Mercantile Exchange.”
While rising retail prices for gasoline is expected to continue as demand increases during the vacation and travel season, the recession has been keeping people closer to home and spending their money on necessities … if they have money. Currently gasoline is averaging $2.75/gallon which is up 5.5% and 42% higher than last spring. The Energy Information Administration also released a report this week saying that gasoline “will likely exceed $3 a gallon at times.”
BUT … just to be a contrarian, China is experiencing inflationary pressures which could trigger weak demand for oil keeping crude prices from rising as demand in the United States returns – LINK.
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